Wednesday, July 20, 2005

Postal reform isn't about reform

In an on-line article, Return to Sender, says that postal reform really isn't about reform but rather about shifting the USPS' $27 billion in military pension obligations back onto the Treasury. According to the article, a lot of service people go to work for the post office after leaving the military.

Since Congress requires the U.S. Postal Service to count retirees' years in the military in figuring their postal pensions it can be a very attractive career move. For years, the U.S. Treasury footed the bill for the extra pension payments and the USPS didn't have to worry about funding these obligations.

The article goes on to say, " 2003, in an effort to minimize the federal deficit, the Bush Administration persuaded Congress to shift the full cost of the pensions onto the already strapped USPS and ultimately onto postal patrons. Last year, attempts to shift the cost back to the Treasury were stymied by a presidential veto threat "

"If the reform passes, it could head off next year's planned 5.4% postal rate increase—the one that will push the cost of mailing a single letter to 39 cents from 37 cents."

To read the whole article, click here.
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posted by Don Schilling at 7:33 PM